Trade-Off
What is given up when one option is chosen over another.
Every criterion in a decision names a possible trade-off, and the intangible ones matter as much as the priced ones. Outsourcing, for instance, buys a competency cheaply and gives up some direct control over the work.
Often confused with
- Risk (business decisions)
- A trade-off is what you knowingly give up by choosing; risk is the chance that what you chose turns out worse than expected.
Taught in
See also
4.3.B.2 · 4.3.B.5